Europe open: Equities advance on dovish central banks and cautious optimism on Greece

LONDON (ShareCast) - Equity markets in Europe kicked off the week on a firmer footing as market participants demonstrate bullishness on hopes of more stimulus measures by the US and Chinese central banks. Friday's remarks from Fed chair Janet Yellen over rate hikes being gradual and not sharp, together with China's central bank on Monday hinting at imminent support through policy easing propelled Asian share markets higher overnight.

That was helping European indices produce modest gains come Monday morning.

By 0907 GMT, the FTSE 100 in London gained 0.6% while the DAX in Frankfurt added 1.5% and the CAC-40 in Paris rose 1.2%. The IBEX-35 in Madrid was up 0.9% and the FTSE MIB in Milan gained 1%. The broader Stoxx 600 index tacked on 1.2%.

"Investors (are) apparently hopeful of some positive movement in regards to the Greek debt issue this week. With Athens providing a reforms list last Friday, its Eurozone creditors continue to look over the proposals whilst Greek PM Tsipras and Co. eye their dwindling funds, which are set to run out in mid-April," said Connor Campbell, a market analyst with Spreadex. Greece's bond yields edged lower on cautious optimism over the country's ability to secure fresh funding in the coming days. Early Monday, the yield on the country's three-year sovereign bonds ticked 28 basis points lower to 19.585% while the 10-year bond yield was down by 7.4 basis points at 10.596%.

In currencies, the euro fell 0.4% against the US dollar to change hands at $1.08374, further supporting equity markets, particularly exporting stocks which benefit from a weaker euro currency.

In commodities, gold prices slid 0.8% to $1188.33 per troy ounce while Brent futures fell 0.4% to $55.85 per barrel and ICE WTI futures were broadly flat at $48.04 per barrel.

In company news, french oil major Total (Swiss: FP.SW - news) has sold its stake in an onshore oilfield in Nigeria for $569m, the company confirmed on Monday.

Eurocement Holding , the second-largest shareholder in cement company Holcim , plans to vote against the Swiss company's union with Lafarge (Paris: FR0000120537 - news) unless the financial terms of the deal are altered, according to press reporting citing a person familiar with situation.

Switzerland's Dufry (LSE: 0QK3.L - news) announced over the weekend that it would take a 50.1% stake in its Italian rival World Duty Free for €1.3bn and plans to purchase the remaining 49.9% of shares through a mandatory offer.